Jefferies Credit Partners is seeking €1 billion from private credit investors for a new secondaries fund. The fund will buy existing stakes in private credit funds, giving original investors a way to cash out before the funds mature.
The secondaries market
Secondaries have become a fixture in private capital. When an investor commits to a private credit fund, that money is typically locked up for years. A secondary sale lets that investor sell their stake to someone else, freeing up capital. The buyer gets a portfolio of loans that are already generating income, without having to wait for a new fund to deploy capital.
The market for secondaries has grown as investors look for ways to manage their private capital portfolios. Selling a stake can help an investor rebalance, raise cash, or exit a fund that no longer fits their strategy. For buyers, secondaries offer a way to acquire assets at a discount, though pricing is often negotiated between the two sides.
Private credit's expansion
Private credit itself has expanded rapidly. As banks have pulled back from lending to mid-sized companies, dedicated credit funds have stepped in. These funds make direct loans, often to companies that can't easily access public debt markets. The result is a large and growing pool of private credit assets, and secondaries offer a way to trade in that pool.
The new fund will focus on private credit secondaries, though specific details on the types of assets or geographic focus were not disclosed. The €1 billion target is a substantial raise, and it signals that Jefferies Credit Partners sees demand from investors who want secondary exposure to private credit.
The fund's target
The firm is currently in the market with the fund, speaking to private credit investors. A final close has not been announced. It's unclear when the fund will hold its final close, or how much of the target has already been committed.
